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Topic 8

Topic 8. 8.1 Goal: TLW convert between currencies. Currency Conversion. Think of as a rate. Two cakes cost $2.50. What is the cost of one cake? Two euros equal $2.50 , then what is the value of 1 euro?. Example.

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Topic 8

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  1. Topic 8 8.1 Goal: TLW convert between currencies.

  2. Currency Conversion • Think of as a rate. • Two cakes cost $2.50. What is the cost of one cake? • Two euros equal $2.50 , then what is the value of 1 euro?

  3. Example • In the year 2000 Elke was planning to go on holiday from Germany to Greece. She changed 2000 euros to Greek dracma (GRD) at a rate of 1 EUR = 340.75 GRD. Calculate how many dracma she received. Elke became ill. She had to cancel her holiday. She sold the drachma back to the bank at a rate of 1EUR = 347.82 GRD. How many euros did she receive? How much did the bank gain from the two transactions? Calculate Elke’s loss as a percentage of her original 2000 EUR.

  4. Example Time • Jin is travelling on business from Korea to Japan. The bank sells Japanese yen (JPY) at a rate of 1 Korean won (KRW) = 0.1219 JPY. A commission is charged at a rate of 2% in KRWW. Jin pays 1 million KRW. How much does she receive in JPY (to the nearest JPY)?

  5. Another • Zsolt travels from Budapest to London. He exchanges 300 000 forints (HUF) for British pounds before he leaves. The bank is selling GBP at a rate of 1 GBP = 411.78 HUF. • Calculate how many GBP Zsolt receives. • Zsolt spends 622.54 GBP in London. He has a choice for the remaining pounds. He can: • Change all the money back to HUF in London. The rate is 1 GBP = 405.55 HUF but the bank charges commission of 1.6% or • Wait and do the exchange at home at a rate of 1 GBP = 397.85 HUF. • Calculate which option if better.

  6. Assignment • P. 384 #1-5

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